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EU Energy Ministers Agree On €180/MWh Gas Price Cap

NATURAL GAS

European energy ministers on Monday reached a deal to cap natural gas prices at €180/MWh, according to Bloomberg.

  • The natural gas price cap, or gas market correction mechanism, will apply from 15 Feb.
  • The cap will come into effect when prices exceed the ceiling on three consecutive days and the difference between TTF gas prices and global LNG benchmarks is greater than €35/MWh.
  • The agreement also unlocks a broader emergency package to rein in market volatility and pave the way for joint gas purchases, which had been put on hold amid a rift on the price cap.

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